The UK economy is expected to have the fastest economic growth of the G7 nations at the start of 2026.
On Thursday, the latest figures from the Office for National Statistics showed the economy had seen strong growth in the first quarter of the year.
From January-March, UK GDP per head grew by 0.6%, even when taking into account the first month of the Iran War.
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This is the fastest GDP growth of the G7 countries that have reported figures so far, and with Japan estimated to see growth of 0.4% in Q1, it looks like the UK will report the fastest economic growth of all the G7.
This was highlighted by the BBC’s economics editor Faisal Islam, who also pointed out the 0.6% growth was the UK’s fastest economic growth per capita in a quarter for 4 years.
The Q1 GDP growth figures for the G7 in 2026 are as follows:
- UK 0.6%
- USA 0.5%
- Canada 0.4%
- Germany 0.3%
- Italy 0.2%
- France 0%
- Japan not reported yet, estimated 0.4%
The figures are the latest evidence that Labour’s plan for the economy is working. Even usual Labour critics such as Andrew Neil reckoned government should be getting more credit for the figures.
Amid all the conversation and speculation about leadership challenges, the government seems to be turning around the economy and fixing the mess left by the Conservatives.
The growth figures were highlighted by Chancellor Rachel Reeves on Thursday morning, who said they were proof her and the government’s economic plan is working.
She told the BBC the growth was “only possible because of the economic stability that we have brought back to our economy.”
In a clear message for any Labour figures eyeing up a leadership challenge towards Keir Starmer, she added: “We shouldn’t put that at risk by plunging the country into chaos at a time when there is conflict in the world, but also at a time when our plan to grow the economy is starting to bear fruit.”
The strong growth figures also come off the back of several pieces of good economic news last month.